Just earlier this month, e-commerce giant Alibaba reported more than $9 billion in sales on Singles' Day in China. The shopping day on Tuesday 11 November is similar to Cyber Monday where heavily discounted goods are offered online.

In the week prior to the event, shopping action was taking place on the stock market as investors snapped shares of Chinese e-commerce companies such as Alibaba, JD.com, and Vipshop. Alibaba’s stock price climbed over 16%, JD.com saw an 8% rise, while Vipshop was up 7%.

As traders sold on the news, it was not a surprise to see a pullback in stock prices for many of these companies. For example, Alibaba dropped 3.87% on Tuesday 11 November after six-straight days of gains.

Matching Singles’ Day?

Not just limited to US companies, Black Friday/Cyber Monday weekend will once again be another excuse for global e-commerce sites to hawk discounted deals. We’re seeing some similar patterns from Singles’ Day emerging in the US and China e-commerce stocks.

Alibaba and Amazon are among companies with share prices edging up over the past week. This suggests a similar momentum building up as we head into the event, and a possible ‘sell on the news’ effect.

This is likely to present a sell opportunity for short-term traders on the day of the event. Conversely, longer-term investors bullish on the e-commerce sector can watch out for a pullback to support levels for an entry.

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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.